A Bengaluru-based startup, Property Share, which enables fractional property ownership, is looking to manage nearly USD 3 billion worth of rental properties over the next three to four years. The company plans to make a foray into the British and Australian markets this year.
Property Share enables users to directly own property with other like-minded owners by letting investors purchase and lend/borrow against fractional shares in complete rent-generating commercial properties.
"Currently, we have 20 properties listed on the portal worth nearly USD$11 million. We want to increase this to USD 2-3 billion over the next three-four years," said Kunal Moktan, co-founder, and CIO, Property Share.
Moktan said that the company is looking to expand its reach in the eight major cities in India, including Chennai, Kolkata, Gurgaon, and Noida. Property Share's model so far, according to Moktan, has been to own rented spaces that could provide yields upwards of 8 percent per annum, but going forward, the goal is to buy completed and rented out commercial buildings, hotels, hospitals, shopping centers, or any other type of property which provides a rental yield of at least 8 percent. According to Property Share, the platform already has 40,000 registered investors, including NRIs.
"We've also decided to enter British and Australian markets this year as these markets allow such fractional investment models," Moktan explained, adding that the portal is awaiting licenses which are expected to be in place by mid-2018.
Property Share is backed by Japan's Asuka, Pravega Ventures, and the Singapore-based Beenext, and it is also looking at raising USD 10-15 million to fund its overseas plans.
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